Break-even sales and sales to realized income from operations.

Smith&Son, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000.

Please show all work and formulas.

1. What is the quantity of sales will be necessary to earn the desired profit?

2. What is the amount of sales that will be necessary to earn the desired profit?